Energy conservation plan approved

SAN FRANCISCO —— State utility regulators unanimously approved a
$2 billion plan Thursday to encourage California residents and
businesses to save electricity, calling it "the most ambitious
energy efficiency and conservation campaign in the history of the
utility industry."

The California Public Utility Commission voted 4-0 to launch a
three-year program that would offer a variety of electricity-saving
incentives, including rebates for consumers who buy
energy-efficient appliances.

"This is the most important thing we can do for long-term energy
reliability in the state," Commissioner Susan P. Kennedy said.
"What this plan does is help us meet our growing needs … with the
cleanest, most cost-effective energy of all."

The vote by state regulators comes as Californians brace for
soaring home heating bills in the aftermath of Hurricane
Katrina.

The state's major utilities say natural gas bills could rise by
30 percent to 40 percent this winter after the storm crippled
natural gas production in the Gulf of Mexico. Hurricane Rita, which
was headed for the Texas coast Thursday, was expected to strain
already-tight supplies.

"The CPUC's three-year plan for 2006-08 calls for SDG&E to
administer approximately $258 million of energy efficiency funds,
including substantial rebates for residential customers, ranging
from $35 to more than $600, for such items as refrigerators, air
conditioners, pool pumps, lighting, water heaters and additional
home insulation," said a statement released by San Diego Gas &
Electric Co. SDG&E is one of the utilities designated to
administer the program.

The utility did not respond when asked how its program will be
funded.

The program also includes incentives and design assistance for
environmentally friendly buildings with energy- and water-saving
technologies.